Why Is Cancer-Focused Aadi Bioscience Stock Trading Higher On Friday?

Core Viewpoint - Aadi Bioscience, Inc. has entered into an exclusive license agreement for the development and commercialization of three preclinical antibody-drug conjugates (ADCs) in collaboration with WuXi Biologics and Hangzhou DAC Biotechnology Co., Ltd. [2] Group 1: License Agreement Details - Aadi is granted exclusive rights to certain patents and know-how related to three preclinical ADC programs utilizing Hangzhou DAC's CPT113 linker payload technology [1] - Aadi will make aggregate upfront payments of $44 million for in-licensing these ADC programs [6] - The agreement includes cumulative development milestone payments of up to$265 million and cumulative commercial milestone payments of up to $540 million, along with single-digit sales royalties [6] Group 2: Financial Aspects - To support the transaction, Aadi has entered into a subscription agreement for a private investment in public equity financing of approximately$100 million [4] - The company is selling 21.59 million shares at a price of $2.40 per share [5] Group 3: Market Reaction - AADI stock experienced a price increase of 24.1$2.87 during the premarket session [7] Group 4: Clinical Trial Update - Aadi announced the halt of the registration-intended PRECISION1 trial of nabsirolimus in patients with solid tumors due to an analysis indicating the study was unlikely to meet the efficacy threshold for accelerated approval [5]